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Notes -
Why hasn't USA and Israel cut the cables that connect Iran to the rest of the internet. I don't see any downsides for them and it is a nice way to counter the state imposed blackout.
Which cables, the cables in the straits of Hormuz that Iran is busily enacting new rules for the control and maintenance of, mandating that Iranian companies must be selected for work there, fees must be paid to Iran? The cables that carry a huge chunk of global data?
The US can't play cards from the Iranian deck, cables are an Iranian card. The Iranians have the cards here!
Why would you cut off cables to a country that's already under internet blackout? Many have already been cut/damaged by various wars. The ones Iran still has are at a small fraction of capacity right now. Cutting them does tiny damage to Iran and Iran will counter by cutting cables that do a lot more damage to the Gulf and the West.
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"Well, officer, I saw he had multiple stab wounds, so I broke a couple fingers. Helps to counter the bleeding."
I don't think this would accomplish what you seem to expect.
Right now Iranian elite have internet while the plebs no. It is the same as with the US imposed blockade. For the US interests is best if no one has internet in Iran than only some. Aka showing that it is on US terms.
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It would probably be bad PR
To play devil's advocate: neither administration has expressed much concern with PR up to this point.
I don't think that's true - I think the USA and Israel are both intensely concerned with PR and constrain themselves accordingly, at the same time they have massive structural disadvantages that make losing the PR battle inevitable. This tension is part of the at times incoherent strategy we see.
For example: the Trump administration clearly wants the Iranian people to rise up (and they likely do want to rise up) so their hands are tied with respect to certain kinds of action that would reduce that possibility. They won't be given any media credit for these decisions, and that media credit is part of what is supposed to circle back to create interest in rebellion in the country.
I really do think that anti-Trump and anti-semitic media bias is worsening and prolonging the conflict.
Circling back to OP's comment - the black out isn't total. I'll be vague for OPSEC reasons (not because it's actually necessary but because the Iranian's involved are intensely paranoid about their government and I will respect that) - certain people in certain industries that aren't really personally or professionally regime aligned are still given access to the outside internet. This allows them consumption of foreign propaganda and communication with members of the diaspora abroad. Some of the those with access are absolutely the kinds of people you might suspect as being aligned with resistance elements.
You'd also have to imagine the U.S. government is taking advantage of this.
So no, shutting off the internet does have downsides, even if some of the benefits are not materializing.
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